German Stocks Rise Most in a Week as EON, Siemens Advance

German stocks advanced the most in
more than a week as reports showed euro-area manufacturing
contracted less that estimated last month and U.S. factory
orders increased in February.

EON SE rallied to a 10-week high after HSBC Holdings Plc
raised its rating on Germany’s biggest utility. Siemens AG (SIE),
Europe’s largest engineering company, rebounded from a five-day
decline. Munich Re, the world’s biggest reinsurer, headed for
the highest close in a decade.

The DAX (DAX) climbed 1.3 percent to 7,894.29 at 4:41 p.m. in
Frankfurt. The gauge has advanced 3.8 percent this year as U.S.
lawmakers agreed on a budget and optimism grew that central
banks around the world will continue stimulus measures to
support the economic recovery. The broader HDAX Index also added
1.3 percent today. Western European markets were closed
yesterday and March 29 for the Easter holiday.

“It’s clear that the global economy bottomed some time
towards the end of last year,” Joachim Fels, head of global
economics at Morgan Stanley in London, said in an interview on
Bloomberg Television with Guy Johnson. “We’re still in the
twilight zone for global growth; it’s neither a recession nor is
it a strong recovery. Conditions in the U.S. are now in place
for a vigorous recovery in the second half of this year.”

The volume of trades on DAX-listed companies was 26 percent
less than the average of the past 30 days, according to data
compiled by Bloomberg.

European Manufacturing

A gauge of manufacturing in the 17-nation euro bloc
declined to 46.8 last month from 47.9 in February, London-based
Markit Economics said today, compared to an initial estimate of
46.6. Figures lower than 50 signal a contraction.

Manufacturing in Germany also contracted less than forecast
in March, final figures from Markit showed. A gauge of activity
slipped to 49 from 50.3 in February, which was the highest
reading in 13 months. A previous estimate called for a reading
of 48.9.

U.S. factory orders rose 3 percent in February after a
revised 1 percent drop the previous month, Commerce Department
data showed. The median forecast in a Bloomberg survey of
economists had called for a 2.9 percent gain.

EON advanced 3.2 percent to 14.05 euros. HSBC upgraded its
recommendation on the stock to neutral from underweight, citing
the company’s increasing exposure to businesses outside the
European Union.